The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Sign in to access this content
Sign InFollowing weeks of robust gains in the technology sector, U.S. markets experienced a sharp correction that saw the Nasdaq 100 index fall by nearly 2%. According to reports, SanDisk shares led the decline in the semiconductor space with a plunge of more than 13%, prompting investors to rotate out of growth stocks and into old economy sectors such as defense and oil & gas amid widespread profit-taking.
This downturn comes as traders monitor the performance of other tech giants, with market data showing mixed results; while the chip sector struggled, TSLA shares stood at $396.65 at the close of July 2, 2026, and INTC was priced at $127.02 (close of July 1, 2026). This retreat aligns with historical trends where the semiconductor sector shows heightened sensitivity to global demand forecasts, particularly during sell-offs affecting major names like Intel.
Looking ahead, investors are watching technical support levels for the Nasdaq 100 after the 2% drop, with a specific eye on TSLA which hit a recent low of $395 (close of July 2, 2026). On the economic front, the market is awaiting the release of China's Manufacturing PMI on June 30, which could provide critical signals regarding global demand for electronics and semiconductors.